POCATELLO — A top Pocatello city official involved in the Northgate development cleared up confusion on Saturday about whether he would vote on issues related to the project.

Pocatello City Council President Jim Johnston, who is also a real estate agent for the Pocatello-based Keller Williams Realty East, told the Journal in October 2018 that he was partnering with the Chubbuck-based Portneuf Development — one of two private development firms involved in the Northgate project located on the city’s north side — to sell 52 homes in a gated community at Northgate that would be marketed to people ages 55 and older.

At the time, Johnston said he and his son, who’s also with Keller Williams Realty East, would be the only real estate agents selling homes in the planned gated community. Johnston described the residences as high-tech smart homes that would sell for a minimum of $270,000 each.

Confusion about Johnston’s role in the Northgate development — a public-private partnership that includes the Idaho Transportation Department, Bannock County, the cities of Chubbuck and Pocatello, Millennial Development of Utah and Portneuf Development of Chubbuck — arose during a Pocatello City Council meeting on Thursday night at City Hall.

At the meeting, Johnston said his work with Portneuf Development to sell houses at Northgate was not a conflict of interest and he planned to cast votes on the project as a member of the City Council. However, on Saturday Johnston said that after some “soul searching” he decided that he would continue to recuse himself from any Northgate related votes that come before the City Council.

Thursday night’s City Council meeting included a public hearing on the creation of a tax increment financing, or TIF, district for the Northgate project.

The Northgate TIF district would include 1,800 acres of land and would freeze property tax values on that land for the general tax rolls at pre-development levels. Any additional property taxes resulting from growth inside the district — called an increment — would be diverted from the general tax rolls to an urban renewal Northgate TIF district fund and would be used to cover Northgate’s significant infrastructure costs.

Millennial Development and Portneuf Development — Northgate’s private developers — are set to pay approximately $60 million over several years to build infrastructure such as streets, water and sewer lines and other public services supporting both their project and other future growth in northeast Pocatello where Northgate is located.

TIF district funds would reimburse the developers for their public infrastructure investments over the course of 20 years. Once the developers are reimbursed for their infrastructure improvements via the TIF district, the district would be retired and the full value of Northgate would be added to the general tax rolls.

During the public hearing regarding the TIF district on Thursday night, one Pocatello citizen, Vic Watts, called on Johnston to recuse himself from voting on any matters related to the Northgate development because of the conflict created by Johnston’s partnership with Portneuf Development to sell homes in Northgate.

During the three-minutes that Watts voiced his opposition to Northgate, Johnston interjected with the words “I’m sorry, you’re incorrect” regarding Watts’ statement about Johnston having a Northgate conflict of interest.

Before this interaction, Johnston had broke from the typical order of acquiring testimony from the public when he asked a question to one Northgate proponent who was addressing the City Council on the project’s behalf.

Local commercial Realtor Don Zebe of Colliers International took the podium and spent three minutes talking about how he supported Northgate because of a shortfall in new high quality office space in Southeast Idaho as well as the need for more local businesses so local residents don’t shop out of town.

After Zebe finished speaking, Johnston asked for Pocatello Mayor Brian Blad’s permission to ask Zebe about how the Northgate project would impact the Old Town Pocatello area.

Blad allowed Johnston to ask the question and Zebe responded by saying he didn’t think Northgate would impact Old Town at all because of the “mystique” Old Town offers in terms of unique storefronts, eateries and late-night social options.

After Zebe finished answering the question, Johnston said, “That’s what I wanted you to say.”

After laughter from the audience, Blad said, “Sounds like that was set up.”

Outside of what appeared to be odd interactions between Johnston and those making public comments, it was a mixed bag at Thursday night’s council meeting in terms of support and opposition for the creation of a TIF district for Northgate.

Several public comments revolved around a lack of studies that would show how taxpayers outside of the Northgate TIF district would be impacted by the municipal demands of providing infrastructure for 1,800 acres of land while the property tax dollars related to growth in the Northgate area would only support infrastructural needs inside the TIF district.

In short, the property tax dollars generated by Northgate’s projected development from undeveloped land into residential neighborhoods and industrial parks would be used to pay off the infrastructure improvements needed for that development to take place rather than be used to bolster local tax coffers.

Other people who spoke at Thursday night’s City Council meeting were concerned about the environmental impact such a large development would have on the local air and water quality.

Northgate proponents said at Thursday night’s council meeting that because Pocatello does not utilize impact fees for new construction, the creation of a TIF district is the only feasible way to provide an incentive for development in the city. Further, others said that Pocatello has a solid track record of utilizing TIF districts effectively, aside from the blemish involving the now-defunct Hoku polysilicon plant also on the city’s north side.

Northgate proponents pointed out that with the TIF district, the private developers only get reimbursed for the infrastructure improvements they’re paying for if they do attract residential and commercial development that will increase the property tax value of the currently undeveloped land. It’s that property tax value increase that pays back the developers for their infrastructure improvements under the TIF arrangement.

After hearing Northgate-related public comments for approximately two hours at Thursday night’s City Council meeting, Blad declared the hearing closed and said the council would vote on an ordinance involving the proposed Northgate TIF district at its next regularly scheduled council meeting at City Hall set for 6 p.m. on May 2.

Though Johnston has recused himself from every vote on the Northgate project since announcing his involvement with Portneuf Development this past October, he told the Journal during an interview at Thursday night’s City Council meeting that he had plans to vote on the ordnance involving the TIF District, but only if the matter ended in a tie vote.

Moreover, Johnston said the attorney representing the two private developers, Thomas Holmes of Pocatello, sent a letter to Pocatello City Attorney Jared Johnson meant to clear up any potential conflict of interest involving Johnston and Northgate.

The February letter states that no exclusive real estate listing agreement had been signed with any realtor, including Jim Johnston. However, it did state that “Colliers International and its local realtor Don Zebe have a listing (agreement) for the commercial properties” at Northgate.

During his interview with the Journal on Thursday night, Johnston said he is still selling houses for Portneuf Development at Northgate, but he is not the exclusive agent, and therefore in his opinion, no conflict of interest exists.

While the future of the Northgate TIF district won’t be decided until next month, Johnston cleared up the confusion about whether he will vote on the matter during a subsequent interview with the Journal on Saturday.

During that interview Johnston said he has decided to recuse himself on all future Northgate matters before the City Council simply because of the perceived conflict of interest it would create.

“I’ve done some talking to people and the perception is that I have an interest in (the Northgate) project. I do not,” Johnston said. “But because of the public perception I will not be voting, as I have not, on anything (related to Northgate) simply because people think I have an interest.”

Johnston continued,” I changed my opinion because I did some soul searching and I just don’t want people to think I am getting something that I am not.”

Click here to watch the entire Pocatello City Council meeting involving the Northgate TIF district.